Precious Metal Derivatives - Lebanon

Lebanon

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,382.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -0.03% resulting in a projected total amount of US$1,380.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$1.69 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$11,920.00bn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 0.84k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Lebanon is experiencing a notable shift in customer preferences, market trends, and local special circumstances.

Customer preferences: Lebanese investors are increasingly turning to Precious Metal Derivatives as a means of diversifying their investment portfolios and hedging against market volatility. The appeal of these derivatives lies in their ability to provide exposure to the price movements of precious metals without the need for physical ownership.

Trends in the market: One of the key trends in the Lebanese Precious Metal Derivatives market is the growing demand for gold and silver derivatives. Investors view these metals as safe-haven assets during times of economic uncertainty, driving up the trading volumes of related derivatives. Additionally, the introduction of innovative derivative products tailored to the Lebanese market is also contributing to the market's growth.

Local special circumstances: Lebanon's unique geopolitical and economic situation plays a significant role in shaping the Precious Metal Derivatives market. The country's history of political instability and currency fluctuations has led investors to seek alternative investment opportunities, with Precious Metal Derivatives offering a viable option for capital preservation and potential returns.

Underlying macroeconomic factors: The macroeconomic environment in Lebanon, characterized by high inflation and currency depreciation, is fueling interest in Precious Metal Derivatives as a store of value. Investors are increasingly looking to protect their wealth against the erosion of purchasing power, driving the demand for these derivatives in the market. Additionally, the lack of traditional investment options in Lebanon further amplifies the appeal of Precious Metal Derivatives as a financial instrument.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.